a) is FALSE and c) is TRUE

I'd like to know how to make a) is correct. (Can you rewrite the sentence for a?)

For c), I don't understand why it's true. Increased competition would result in a decrease in mark up, therefore, the interest rate on bond should be higher. Can you please clarify it?

A13. Assume the economy is initially characterised by stable inflation at the central bank's inflation target. Choose the correct statement(s): a) The inflation rate in the economy is determined by the growth rate of the money supply chosen by the central bank. I b) Inflation would be predicted to rise above target if there is a business cycle upswing because of the increase in wages required to get workers to work hard in a tighter labour market. c) The central bank would be expected to respond to increased price competition among firms by reducing the interest rate